The real estate crisis in Portugal pushed Carla Luís, who had just graduated in civil engineering at the time, to look for job opportunities abroad. It was in Bogotá, Colombia, that she took her first steps in her international career in 2013. Little did she know that it was in that city, on the other side of the Atlantic, where she would find love, with Colombian lawyer Juan Amaya. Together, they decided to move to Portugal to found the real estate development company Sharp Developers, about six years ago. Since then, they have dedicated themselves to building “unique homes” in the Porto area and have no plans to leave the Invicta. “The Porto district is the future, and the future is the place of opportunities,” they said in an interview with idealista/news.

Since founding Sharp Developers in 2018, the couple has invested around 65 million euros in five real estate projects in Porto and Vila Nova de Gaia, three of which are in the upper-mid and high residential market segments. They revealed in the interview with idealista/news that they will build a new development near the Boavista area with 38 new apartments. “We believe there is still a lot to build here, so we will stay in Porto,” said the lawyer.

Carla Luís and Juan Amaya — she the CEO and he the general director of Sharp Developers — want to continue building premium homes in the Porto area, although they believe there are several legislative changes that are constraining the sector. Right from the start, they say that ending the golden visa and the non-habitual resident regime “was an absolute mistake.” And they admit that “there are still many doubts” about the implementation of the new urban licensing ‘simplex,’ a regulation awaiting review.

On the other hand, they say they are “feeling first-hand” the new framework for the reduced VAT rate for urban rehabilitation, warning that this is leading to an “increase in sale prices for the public.” And building affordable housing? “The issue of reducing VAT is absolutely necessary” so that more developers can enter that niche, they state in a joint interview with idealista/news.

Real estate developers

Carla Luís, CEO, and Juan Amaya, general director of Sharp Developers
Credits: Gonçalo Lopes | idealista/news

How do you describe the activity of Sharp Developers from its foundation in 2018 until today?

Juan Amaya [JA]: Sharp Developers was born from the meeting of two people from different fields, in an uncommon place: Bogotá, Colombia, my country. That’s where we fell in love and decided to live in Portugal to start the company’s story. Since then, we have five real estate projects in the portfolio and one in structuring this year. Of these, three projects are in the upper-mid and high residential market. All the homes are unique. We have already sold 25 properties from the first three projects and have about 40 units to complete next year. And we will announce new projects and future challenges later this year.

What is the value of the real estate investment made so far? What kind of financing do you use?

JA: At this point, we have invested about 65 million euros. The projection for next year is to reach 100 million euros. Our financial model is based on bank loans. Our investors own about 40% of the capital structure, and 60% is bank credit.

"The Porto district is the future, and the future is the place of opportunities. Now is the right time to be in the city of Porto"

How does one invest “smartly” in the Portuguese real estate market?

JA: That’s an important phrase because we believe we have to be well-prepared for current circumstances. We always act with a clear business plan; we conduct a very intense search for land and locations; we assess every factor that can be predictable, though we can’t foresee everything that may happen. We always try to prepare that business plan with great rigor.

Home construction in Portugal

The Grand Splendouro, Vila Nova de Gaia
Credits: Sharp Developers

You currently have five real estate developments (completed or in progress), all in Porto and Vila Nova de Gaia. What is special about the Porto area that leads you to invest here?

Carla Luís [CL]: After deciding to move to Portugal, we started studying the cities where we could enter. Lisbon was, of course, the priority, but we didn’t have much capital, and the truth is that any negative phenomenon in real estate would start in the capital and only reach Porto after two or three years. That’s why we decided to invest in Porto, besides being a city with identity, very beautiful, and with an airport.

JA: The Porto district is the future, and the future is the place of opportunities. Now is the right time to be in the city of Porto. The city’s growth has been absolutely incredible since we arrived in 2018. The demand for homes as a first or second residence is exponential. We see tourists every day filling the streets with joy and movement, streets that about 10 years ago were empty. All of this is the future. And we must be where the future is.

"We took care to build homes with truly generous areas again"

You recently launched Splendouro Village in Gaia, which will bring 29 houses to the market with an investment of 20 million euros. What distinguishes these luxury homes? What is the price range of these houses?

CL: Splendouro Village is a gated community with a natural park at its center of 4,800 square meters (m2), offering seven types of houses named after flowers: we have Lavenders, Tulips, Magnolias, Camellias…

The house areas start at 290 m2 and can go up to 460 m2. Prices range between 775 thousand euros and 1 million 650 thousand euros. The more expensive ones are very sophisticated, with double-height ceilings, spacious rooms, unique interior architecture, and home automation (to control curtains, shutters, air conditioning, lighting, and gates). These properties also have sustainable features, such as water heating with heat pumps, ducted air conditioning, and pre-installation for photovoltaic panels.

All these homes are designed for families of four, with a master suite for the couple and two bedrooms, one for each child. Additionally, there’s a home office to support remote work or for children’s homework. Each has an associated garden and a terrace for outdoor gatherings. Seven houses also have pools.

Luxury homes for sale

The Grand Splendouro, Vila Nova de Gaia
Credits: Sharp Developers

You are also developing Splendouro Marina Houses and The Grand Splendouro. How many homes will be built? What is special about these luxury developments?

CL: The Grand Splendouro is a building with 32 apartments and eight commercial spaces, located in front of the sea where codfish was once dried. It’s aimed at the premium segment and features, for example, something innovative here in the city: the ‘Box Lift System.’ This system allows a person to park in their private garage and go up to their apartment by elevator with total privacy. We also have a set of amenities covering 1,300 m2, including a 15-meter pool for adults and children, coworking space, a party room, and a gym. Moreover, we took care to build homes with truly generous areas again. We built a T3 with 175 m2, while competitors build a T4 with 164 m2. These apartments will also have photovoltaic panels and heat pumps for water heating. It’s truly a differentiated product.

The Marina Houses is a unique product with distinctive architecture inspired by the Douro region and the Port wine cellars, hence the sloped ceilings. The houses have three floors to take advantage of the existing terraces on the land, as well as privileged views of the marina, river, and estuary. There are 11 houses, all with pools, elevators, high-quality finishes, generous areas, and high ceilings (3 meters), something rare in today’s market. We sold at least two houses to very tall clients who were looking for high-ceiling homes that didn’t exist on the market.

"Today, real estate development focuses heavily on smaller areas so that the final price is also lower and can reach a wider range of buyers"

Why, at a time when the trend is to build smaller houses, are you deciding to give importance to spacious areas?

CL: We value space because we spend a lot of time at home. It’s where we live our lives, express our emotions, and raise our children. Home really is a sanctuary. We greatly appreciate the home — its form, its functionality, and its spaces. Today, real estate development is very much focused on reduced areas so that we have fewer square meters. This also lowers the final price to reach the market and a wider range of buyers.

Who buys your luxury homes most — Portuguese or foreigners? What are the main nationalities? What is the primary purpose of buying (first home, holiday home, or investment)?

CL: We are in a niche, so unfortunately we don’t build houses for everyone; we build houses for those who truly appreciate them. Right now, 50% of our buyers are Portuguese and the other 50% are foreigners, mostly from the Americas — both North and South America. Some foreign families come here as a lifestyle decision; they set up a company or look for work. Others like the country and the city so much that they buy a home with the intention of moving to Portugal after they retire.

“Having an investment channel like the golden visa was very good for attracting foreign investment, so it was an absolute mistake by the Government to have revoked all these possibilities.”

Why do families choose your homes over others?

CL: Location always matters because these foreign buyers want to be close to the airport. Proximity to the river is also very appealing. Families choose our houses because of their characteristics, spacious areas, the fact that we use distinctive materials, and that they are architecturally unique.

How do you evaluate the process of obtaining urban licensing in Porto and Gaia?

JA: Porto City Hall has clearer, well-understood regulations that leave little room for alternative interpretations. Gaia City Hall has its own different regulations, which often require interpretation — creating some room for mistakes. That’s the key difference between Porto and Gaia.

Was there a “before and after” with the implementation of the licensing simplex?

JA: On a national level, I’d say that it helped because subdivisions can now proceed through prior communications. That was definitely a positive step. But we also feel there must be closer supervision of construction work by the city halls because we see things being built incorrectly. Greater control is needed.

“Today we have both a loss of foreign investment and a tax fallout from the non-habitual resident regime.”

What could be improved in the simplex regulation?

JA: There are many uncertainties surrounding the application of its standards and regulations. Deadlines must be met definitively. I believe some technicians are hesitant because they now assume responsibility for the certifications they issue on each project. Before, municipalities were responsible for licensing projects — this brought stability, but the deadlines weren’t met, which caused significant delays.

How did the end of tax benefits — the golden visa and non-habitual resident regime (RNH) — change home demand? And how did it affect attracting investment to Portugal?

JA: In our market, yes. The golden visa and RNH were programs that were very well-regarded abroad. Having an investment channel like the golden visa was very good for attracting foreign investment — so it was an absolute mistake by the Government to have revoked all those possibilities. RNH generated tax income that Portugal didn’t have before. So, today we have both losses in foreign investment and a tax shortfall resulting from the end of RNH.

Do you have other luxury developments in the pipeline? Also in the Porto area or elsewhere? What is the estimated investment?

JA: We will continue to focus on the Porto district. This year we will announce a new project — a new 10-story building with 38 apartments targeted at the upper-middle segment — very well located near the new metro stations on the Ruby Line. And we’ll keep looking for opportunities. We believe there’s still a lot to build here, so we’ll remain in Porto because this is where Sharp Developers was born and it’s still too young a company to go to other cities.

Does the metro expansion in Porto open new possibilities for residential development?

JA: Absolutely. Infrastructure drives up the value of the land as long as the context is right. The new Ruby Line is undoubtedly going to boost new project development — we can already see this happening around the Boavista area.

“We hope there will be the right opportunity for the new Government to address the tax framework for rehabilitation.”

Is investing in affordable housing part of your plans? Why or why not?

JA: Conditions aren’t ideal for entering that niche. We believe a different tax framework is needed — with clear, long-term incentives. Reducing VAT is absolutely necessary. It’s a loud cry from the entire construction and real estate development sector. This is the most effective tool to address rising construction costs.

What are the main constraints you feel in construction and rehabilitation in Portugal?

JA: Here we have a very significant constraint that we feel first-hand: the new framework for reduced VAT in urban rehabilitation. The tax authority is inspecting construction companies, which are passing those extra costs onto developers. When you have a fixed business plan that accounted for VAT as a cost you can’t deduct, all you can do is raise sale prices to the public. That is the most negative outcome for the economy.

We hope there will be a proper tax framework introduced by the new Government for rehabilitation. And the tax authority must have a clear policy so that completed developments and those under construction cannot be targeted retroactively.

“Both the Government and all parties in Parliament have a unique responsibility at this moment to offer stable conditions to builders and real estate developers.”

What strategies do you use to tackle labor shortages and make construction more agile?

JA: Every one of our projects is a full-cycle process — from purchasing the land, to negotiation, to finding the right partners to take the development to completion. Fortunately, we have found very good, top-quality builders. Many obstacles must be overcome, but most importantly, we never lose sight of our objective and always bear in mind that we answer to our investors.

What message would you like to leave for the new Government to encourage homebuilding in Portugal and help resolve the housing crisis?

JA: Both the Government and all the parties in Parliament have a unique responsibility at this moment to offer stable conditions to builders and real estate developers. The state will need the help of the private sector, and we, as private operators, are here to help — but we need clear rules because we have deadlines to meet. We must look at construction not as a problem, but as a solution.